Abstract
The production and marketing of non-timber goods (NTFP) and services gained importance in forest management as demand
for these increased considerably. However, due to lack of relevant information on the level of output of non-timber products, its
economic significance was seldom accounted for in the valuation of forests. Dry deciduous forests in India is one such typical
case where forest valuation is yet to integrate the NTFP stock, widely used for subsistence and cash income. A detailed
accounting of commercially valuable forest products harvested from dry deciduous forests of Eastern India was made to highlight
the economic worth of forests and contribution of NTFPs. The net present value of revenues from NTFP was estimated to be US$
1016 ha_ 1 in the coastal area and US$ 1348/ha in the inland area, which proved to be significantly higher than the returns from
alternative land uses. Dry deciduous forests were estimated to have more value than had been assumed previously and compared
favourably against potential timber revenue (US$ 268 ha_ 1). The result indicates the necessity of developing a new valuation
protocol for use by forest managers while deciding conversion of forest lands for non-forestry purposes.
D 2004 Elsevier B.V. All rights reserved.